An increasingly complex global capital markets environment and the growing willingness of institutional shareholders to become active, if not activist, investors have amplified demands on how companies interact with shareholders, and put significant pressure on IR teams. Today more than ever, making full use of the IR role means deploying it as a strategic asset that gauges market sentiment and helps Board members to decide, market and—where necessary—defend corporate actions and strategy. For many listed companies, this means upgrading the IR role by adding strategic responsibilities, hiring or developing strategic thinkers into their IR teams, and rethinking organisational structures and reporting lines. Importantly, a highly effective and strategic IR capability frees up management time and creates greater reach for the CEO and CFO.
The report makes the case for a much more strategic investor relations function than we mostly see today, acting as an advisor to the executive board in addition to its traditional roles.